4
March 2024
Bradda Head Lithium
Ltd
("Bradda
Head", "BHL" or the "Company")
Mobilization of Drilling and Ancillary
Equipment to Basin Project, Targeting 2.5MT LCE
Bradda Head Lithium
Ltd (AIM:BHL, TSX-V:BHLI), the North America-focused
lithium development group, is pleased to announce the mobilization
of equipment to the Basin Project, Arizona to initiate
Resource expansion drilling with a six-hole program designed to
significantly expand the Company's lithium in clay Mineral Resource
Estimate ("MRE"). This follows the successful 2023 sonic drilling
campaign which saw the "tripling" of BHL's Inferred and Indicated
MRE at Basin. This six-hole program will build upon Bradda Head's
1.085MT Lithium Carbonate Equivalent (LCE) by drilling holes an
additional 1.2 kilometers towards the north on newly permitted
drill holes. The objective of this program is to add a minimum of
1.5MT LCE, surpassing the benchmark of 2.5MT LCE which will trigger
the final US$3 million royalty payment from Lithium Royalty Company
(LRC) to Bradda Head. The drilling program is anticipated to finish
towards the end of April, 2024.
Program Summary:
·
Six-hole core drilling program of approximately
8,800 feet (2,680m) planned
·
Program anticipated to expand LCE from 1.085MT to
>2.5MT
·
Step-out drill holes at 500 to 700m spacing to
maintain Inferred category of MRE
·
One hole will be drilled into Precambrian basement
in center of gravity low
·
Gravity low may represent extensively thick clays
both in the Upper, Lower, and Basal Red-Beds
·
Holes will test Lower Clay to expand tonnage
potential and thicker sequence correlative with gravity low which
also has the potential for exceptional lithium grades
Ian
Stalker, Executive Chairperson, commented:
"After we completed the MRE in September 2023, we quickly
realised the unbridled potential to continue expansion of this
important lithium-in-clay resource in Arizona. Our geologists
developed a plan, designed a new drilling program and promptly
engaged the BLM for an expansion of our Basin North permit. We
thank the BLM for delivering a positive decision and look forward
to embarking on this exciting drill program.
Not only are we hoping for sizeable expansion of this
resource, but are estimating the resource will grow from the
current 1.085 MT of LCE to over 2.5 MT, which will trigger an
important US$3 million royalty payment from LRC. We are confident
this will be a successful programme, and, with the royalty payment,
the Company will be in an excellent position for the remainder of
2024 during the current softened lithium market."
General Background
The Company is building upon the
2023 MRE and NI-43-101 complaint report completed by SRK Consulting
(UK) Ltd and reported on 28 September, 2023. In this prior PR, the
Company reported the following in Table 1 below:
Table
1.
Classification
|
Domain
|
Tonnes
|
Mean Grade
|
Contained Metal
|
Mt
|
Li (ppm)
|
K (%)
|
LCE (kt)
|
K (kt)
|
Indicated
|
Upper Clay
|
11
|
720
|
3.5
|
42
|
380
|
Upper Clay HG
|
6
|
1350
|
3.2
|
43
|
190
|
Lower Clay
|
-
|
-
|
-
|
-
|
-
|
SubTotal
|
17
|
940
|
3.4
|
85
|
570
|
Inferred
|
Upper Clay
|
143
|
790
|
2.7
|
600
|
3,800
|
Upper Clay HG
|
48
|
1290
|
3.1
|
330
|
1,500
|
Lower Clay
|
19
|
690
|
2.8
|
70
|
530
|
SubTotal
|
210
|
900
|
2.8
|
1,000
|
5,800
|
|
|
|
|
|
|
o Mineral Resource statement has an effective
date of 1 September 2023.
o The Mineral Resource is reported using a
cut-off grade of 550 ppm Li and is constrained to an optimised open
pit shell, which was generated using the following assumptions:
lithium carbonate metal prices of 22,000 USD/tLCE; State of Arizona
royalty (selling cost) of 6%; operating costs of 40 USD/ tore; Li
recovery of 72%; mining dilution and recovery of 0% and 100%; and
pit slope angle of 45°.
o Tonnages are reported in metric
units.
o Rounding as required by reporting guidelines
may result in apparent summation differences between tonnes, grade
and contained metal content which are not considered
material.
o Conversion factor of Li metal to lithium
carbonate equivalent (LCE) = 5.323
o The figures above are reported on a gross
basis given Bradda's 100% interest in the property
|
This new programme is targeting
significantly thicker clay sequences, consistent if not higher
lithium grades and thicker lower clay sequence, with the potential
to also discover new clays within the nearly 2km2
gravity low.
Bradda Head Lithium received an
affirmative decision from the BLM on February 28th with
confirmation that it could conduct exploration drilling on the
Basin North notice of intent (NOI) amendment and based on a
reclamation bond increase with permission to proceed on 3.8 acres
of surface disturbance. Earth moving equipment was mobilized to
prepare drill sites and experienced core drilling contractors
brought in to conduct the drilling.
Like previous drilling programs
conducted at Basin, drill holes will be vertical, but when clay
horizons are encountered the Company's plan is to convert to a
triple tube core capture technique which ensures high recovery and
provides the Company with many options for sampling, density
measurements, and geotechnical data for future
studies.
Figure 1. Basin Drill Plan for 2024, prior drilling, geology,
land, mineral resource boundaries.
For further information please visit
the Company's website: www.braddaheadltd.com.
Qualified Person (BHL)
Joey
Wilkins, B.Sc., P.Geo., is Chief Operating
Officer at BHL and the Qualified Person who reviewed and
approved the technical disclosures in this news release. Mr.
Wilkins is a graduate of the University of
Arizona with a B.Sc. in Geology with more than 38 years
of experience in mineral exploration and is a qualified person
under the AIM Rules and a Qualified Person as defined under
NI-43-101. Mr. Wilkins consents to the inclusion of the
technical information in this release and context in which it
appears.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF THE MARKET ABUSE REGULATION (EU No. 596/2014) AS IT FORMS PART
OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN
UNION (WITHDRAWAL) ACT 2018. UPON THE PUBLICATION OF THIS
ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INSIDE
INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN AND SUCH
PERSONS SHALL THEREFORE CEASE TO BE IN POSSESSION OF INSIDE
INFORMATION.
ENDS
Contact:
Bradda Head Lithium
Limited
|
+44 (0) 1624 639 396
|
Ian Stalker, Executive Chairperson
Denham Eke, Finance Director
|
|
|
|
Beaumont Cornish
(Nomad)
|
+44 (0) 2076 283 396
|
James Biddle / Roland Cornish
|
|
|
|
Panmure Gordon
(Joint Broker)
|
+44 (0) 2078 862 500
|
Hugh Rich
|
|
|
|
Shard Capital (Joint
Broker)
|
+44 (0) 2071 869 927
|
Damon Heath / Isabella Pierre
|
|
|
|
Red Cloud (North
American Broker)
|
+1 416 803 3562
|
Joe Fars
|
|
|
|
Tavistock (Financial
PR)
|
+ 44 20 7920 3150
|
Nick Elwes / Adam Baynes
|
braddahead@tavistock.co.uk
|
About Bradda Head Lithium Ltd.
Bradda Head Lithium Ltd. is
a North America-focused lithium development group. The Company
currently has interests in a variety of projects, the most advanced
of which are in Central and Western Arizona: The Basin
Project (Basin East Project, and the Basin West Project)
and the Wikieup Project.
The Basin East Project has an
Indicated Mineral Resource of 17 Mt at an average grade of
940 ppm Li and 3.4% K for a total of 85 kt LCE and
an Inferred Mineral Resource of 210 Mt at an average grade of
900 ppm Li and 2.8% K (potassium) for a total of
1.09 Mt LCE. In the rest of the Basin Project SRK
has determined an Exploration Target of 250 to 830 Mt
of material grading between 750 to 900 ppm Li, which is
equivalent to a range of between 1 to 4 Mt contained
LCE. The Group intends to continue to develop its
three phase one projects in Arizona, whilst endeavouring to
unlock value at its other prospective pegmatite and brine assets
in Arizona, Nevada, and Pennsylvania. All of Bradda
Head's licences are held on a 100% equity basis and are in close
proximity to the required infrastructure. Bradda Head is
quoted on the AIM of the London Stock Exchange with the
ticker of BHL and on the TSX Venture Exchange with a
ticker of BHLI.
Technical Glossary
Kt
|
Thousand tonnes
|
Ppm
|
Parts per million
|
Exploration
Target
|
An estimate of the exploration potential of a mineral
deposit in a defined geological setting where the statement or
estimate, quoted as a range of tonnes and a range of grade (or
quality), relates to mineralisation for which there has been
insufficient exploration to estimate a Mineral Resource.
|
Inferred Mineral
Resource
|
That part of a Mineral Resource for which quantity
and grade (or quality) are estimated on the basis of limited
geological evidence and sampling. Geological evidence is sufficient
to imply but not verify geological grade (or quality) continuity.
It is based on exploration, sampling and testing information
gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings, and drill holes. An
Inferred Mineral Resource has a lower level of confidence than that
applying to an Indicated Mineral Resource and must not be converted
to an Ore Reserve. It is reasonably expected that the
majority of Inferred Mineral Resources could be upgraded to
Indicated Mineral Resources with continued exploration.
|
Indicated Mineral
Resource
|
That part of a Mineral Resource for which quantity,
grade (or quality), densities, shape and physical characteristics
are estimated with sufficient confidence to allow the application
of Modifying Factors in sufficient detail to support mine planning
and evaluation of the economic viability of the deposit.
Geological evidence is derived from adequately detailed and
reliable exploration, sampling and testing gathered through
appropriate techniques from locations such as outcrops, trenches,
pits, workings, and drill holes, and is sufficient to assume
geological and grade (or quality) continuity between points of
observation where data and samples are gathered.
|
MRE
|
Mineral Resource Estimate
|
Forward-Looking Statements
Neither TSX
Venture Exchange nor its Regulation Services Provider (as that term
is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release. This
News Release includes certain "forward-looking statements" which
are not comprised of historical facts. Forward-looking statements
include estimates and statements that describe the Company's future
plans, objectives or goals, including words to the effect that the
Company or management expects a stated condition or result to
occur. Forward-looking statements may be identified by such terms
as "believes", "anticipates", "intends to", "expects", "estimates",
"may", "could", "would", "will", or "plan". Since forward-looking
statements are based on assumptions and address future events and
conditions, by their very nature they involve inherent risks and
uncertainties. Although these statements are based on information
currently available to the Company, the Company provides no
assurance that actual results will meet management's expectations.
Risks, uncertainties, and other factors involved with
forward-looking information could cause actual events, results,
performance, prospects, and opportunities to differ materially from
those expressed or implied by such forward-looking information.
Forward looking information in this news release includes, but is
not limited to, following: The Company's objectives, goals, or
future plans. Factors that could cause actual results to differ
materially from such forward-looking information include, but are
not limited to: failure to identify mineral resources; failure to
convert estimated mineral resources to reserves; delays in
obtaining or failures to obtain required regulatory, governmental,
environmental or other project approvals; political risks; future
operating and capital costs, timelines, permit timelines, the
market and future price of and demand for lithium, and the ongoing
ability to work cooperatively with stakeholders, including the
local levels of government; uncertainties relating to the
availability and costs of financing needed in the future; changes
in equity markets, inflation, changes in exchange rates,
fluctuations in commodity prices; delays in the development of
projects, capital and operating costs varying significantly from
estimates; an inability to predict and counteract the effects of
COVID-19 on the business of the Company, including but not limited
to the effects of COVID-19 on the price of commodities, capital
market conditions, restriction on labour and international travel
and supply chains; and the other risks involved in the mineral
exploration and development industry, and those risks set out in
the Company's public documents filed on SEDARplus. Although the
Company believes that the assumptions and factors used in preparing
the forward-looking information in this news release are
reasonable, undue reliance should not be placed on such
information, which only applies as of the date of this news
release, and no assurance can be given that such events will occur
in the disclosed time frames or at all. The Company disclaims any
intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, other than as required by law.
Beaumont Cornish Limited ("Beaumont Cornish") is the Company's
Nominated Adviser and is authorised and regulated by the FCA.
Beaumont Cornish's responsibilities as the Company's Nominated
Adviser, including a responsibility to advise and guide the Company
on its responsibilities under the AIM Rules for Companies and AIM
Rules for Nominated Advisers, are owed solely to the London Stock
Exchange. Beaumont Cornish is not acting for and will not be
responsible to any other persons for providing protections afforded
to customers of Beaumont Cornish nor for advising them in relation
to the proposed arrangements described in this announcement or any
matter referred to in it.